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Digital Pricing Strategies & Lessons Learned
Bob PritchettLogos Bible Software
Secret of Profitability
Income > Expenses
Deliver Real Value
The best price makes a profit and brings the customer back.
The value should be real, and you should be proud of it.
Don’t devalue your product.
Multiple Pricing Options
Different messages:◦Limited Time◦Exclusive◦Best Price◦Auction
Different channels:◦Academic Discount◦Twitter / Facebook Specials◦Email Lists
Allow Users to Self Select
Have multiple price points◦Users know which bear they are
Let people choose a size◦Always have a way for a user to spend more
At each size, offer add-onsAsk “Do you want fries with that?”
Bundle
Good for the user (better value)Good for the vendor (fewer transactions)Spreads costs of narrow productsMonetizes low-volume products
Don’t Sell a Commodity
Differentiate your productMake a new product if necessaryTurn old products into new products
Sell Something No One Buys
If you don’t have a product so expensive no one has ever bought it, you are leaving money on the table.
Go Direct
Control PricingControl AccessControl Margin
Pick Up the Crumbs
Offer old sales terms to new customersBundle poor sellersGive away product instead of money
Respect Your Customers
A ‘best price’ should beCustomers have perfect information
Process
Ship and Charge
Start Production
- Cover Costs -
Take Orders
Launch Product
Gathering Interest
Dollars
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
$34.95
Gathering Interest
Dollars
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
$34.95
$39.95
Under Development
Dollars
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
$34.95
$39.95
$44.95
Reference Book
EmailProduction
Shipped
Coffee Table Book
Production
Shipped
Benefits
Buy Now!
An Old Business Model
Community Pricing
1,000 x $10 = $10,000
250 x $40 = $10,000100 x $100 = $10,000
10 x $1,000 = $10,000
Community Pricing $6
0 $7
0 $8
0 $9
0 $1
00 $1
10 $1
20 $1
30 $1
40 $1
50 $1
60 $1
70 $1
80 $1
90 $2
00 $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
No Cost Recovery
Highest Revenue
Best Price
Links & Contact
http://logos.com/prepubhttp://logos.com/communitypricing
